FASB has proposed changes to Topic 842, Leases for related parties under common control. The proposal would change the evaluation of the lease term for private entities under common control to allow the use of what was in writing. The proposal would also change the amortization of leasehold improvements for all common control entities including public entities. Comments are due January 16, 2023.
The FASB has proposed a new standard that is intended to reduce diversity in practice related to joint venture accounting at inception. When items are contributed to a joint venture, the proposal would require the use of fair value of the items contributed. The proposal also includes new disclosure requirements. Comments are due December 22, 2022.
While the FASB continues to work on updating GAAP, they have also been diligently working on filling in the gaps in the conceptual framework. This proposal would add chapter 2 to the framework and provides guidance on what is the reporting entity for financial reporting purposes. It address the concepts of parent only, combined, and consolidated financial statements. Comments are due January 16, 2023.
After its post-implementation review, the FASB has proposed some updates to the current segment reporting requirements including requiring those entities with only one segment to provide disclosures. It also expands annual disclosures to interim reporting. Segment reporting is currently only required for public companies and the proposal continues that scope. Comments are due in December 2022.
FASB has issued a niche proposal to expand the use of the proportional amortization method to more types of income tax credit structures so long as certain conditions are met. This will help align the accounting for more types of arrangements. Comments are due by October 6, 2022.
